Texas has no state income tax. Use the side income tax calculator with Texas tax rates to see your exact after-tax numbers.
Open Side Income Tax Calculator →Side income earned in Texas avoids state income tax entirely, making it one of the best states for gig workers, tutors, and anyone with a side hustle. You still owe federal income tax at your marginal rate and self-employment tax (15.3%) if the side income is from self-employment, but the absence of state tax provides a meaningful advantage. For a $20,000 side hustle, that could mean $500-$2,000 more in your pocket versus a state with income tax. Use this calculator to see your true net on side income in Texas.
Texas is one of nine states with no personal income tax. Residents keep every dollar of earnings from state-level taxation, though the state generates revenue through other means such as sales taxes, property taxes, and in some cases severance taxes on natural resources. The zero-income-tax policy makes Texas particularly attractive for high earners, remote workers, and retirees seeking to maximize their after-tax income.
The table below shows what you actually keep at five salary levels in Texas, accounting for federal tax, FICA, and zero state income tax.
See how Texas compares to other South states. Each link takes you to the side income tax calculator landing page for that state.
For a comprehensive breakdown of Texas’s tax structure, salary comparisons, cost-of-living analysis, and more, visit the full Texas take-home pay page.